EXW vs FOB vs DDP: Which Trade Term Should You Choose?
A practical comparison of the three Incoterms most used in cross-border small parcel and container shipping, with a decision checklist.
Key takeaways
- EXW gives you the lowest unit price but the most responsibility.
- FOB balances risk: the seller clears export, you control freight.
- DDP is convenient but duties are hard to predict; on m633 it is estimate-only in phase 1.
Comparison table
| Term | Freight | Export customs | Import duties |
|---|---|---|---|
| EXW | Buyer | Buyer | Buyer |
| FOB | Buyer | Seller | Buyer |
| DDP | Seller | Seller | Seller |
Sources
ICC Incoterms® 2020; national customs tariff databases.